Hunters Property in talks to be bought by rival TPFG

Hunters Property said it was in early talks to be bought by bigger rival The Property Franchise Group as Britain's estate agents look to consolidate.

In a statement Hunters said it had received a preliminary approach from TPFG. It did not give any details about a potential offer price.

"The approach is preliminary, and the terms remain subject to ongoing discussion and to due diligence by both Hunters and TPFG," Hunters said. "Accordingly, there can be no certainty that an offer will be made nor as to the terms of any offer, if made."

Hunters shares jumped 44% to 84p at 08:37 GMT, valuing the company at about £28m. TPFG shares fell 5.5% to 170.5p, valuing it at £44m.

Hunters, chaired by Conservative MP Kevin Hollinrake, published the statement in response to a report by Sky News on Thursday evening. TPFG, whose brands include Ellis & Co and Martin & Co, has said it wants to expand by buying large franchised agency brands.

TPFG said it was in "early contemplation" of a possible offer for Hunters in line with its acquisition strategy.

The news of talks between Hunters and TPFG follows bid proposals to Countrywide from Connells and private equity firm Alchemy Partners. The UK's estate agents are in a mini-boom triggered by a stamp duty holiday that ends in March but experts have warned the market could enter a downturn as unemployment rises.

Hollinrake owns 13.3% of Hunters shares and its biggest investor is Nigel Wray, the former chairman of Saracens rugby club, with 17.5%. 71% of the AIM-traded group's shares are owned by private investors.